Insurance Bad Faith: A Quick Guide
People are relying on insurance companies to be there when they need it the most. Whether it is a medical insurance for a serious illness or a car insurance for a car crash. People do not pay for insurance premiums regularly without any agenda after all. They do this because they know that they will help them when they will be needing an aid for future unthinkable events to happen.
Sadly, some other insurance companies are not complying to the contract they are about to do when they need the help the most. They are looking for loopholes for them not to be bound on the certain due responsibility, When this insurance companies try to wriggle their way out from everything associated in the contract, they are acting in bad faith.
Legally speaking, insurance bad faith is “describes a tort claim that an insured person may have against an insurance company for its bad acts.” In most countries such as United States, insurance companies are bound a duty of good faith and fair dealing to those they insure. It is known duty of every insurance companies to do such performance to their customers. When an insurance company does not comply with this duty, they can be sued with tor claim and breach of contract claim. Aside from the fact that they did not uphold their end of the bargain, insurance companies can be sued for civil wrong doings.
In the end, the insurance companies will be forced to pay much more damages because of their bad faith aside from the face value of the original contract.
Health insurance, auto insurance, life insurance and long term disability insurance are the kinds of insurance carriers that insurance companies can be held liable when acted in bad faith. Every type of insurance carrier has the duty to its policy holders to honor their agreements and to act in good faith. Trying to look for a way out of the due performance they opt to do is acting in bad faith and they can be sued because of this.
An insurance company that acts in bad faith is liable to pay for compensation for the emotional and financial distress it cause. You will be needing a good lawyer to calculate the damages for you. This lawyer will help you bring the case to the court and will guide you with everything the insurance company is opt to give you.
If you read the policy and feel like your insurance company is not giving the coverage you truly deserve, take an action. Do not leave this thing behind and look for a qualified lawyer for you.